The Changing Inter-Industry Wage Structure of the Organised Manufacturing Sector in India, 1973-74 to 2003-04

摘要

This study examines the inter-industry wage structure of the organised manufacturingudsector in India for the period 1973-74 to 2003-04 by estimating the growth of averageudreal wages for production workers by industry. In order to estimate the growth rates, the study adopts a methodological framework that differs from other studies in that the time series properties of the concerned variables are closely considered in order to obtain meaningful estimates of growth that are unbiased and (asymptotically) efficient. Usingudwage data on 51 manufacturing industries at three digit level of the National IndustrialudClassification 1998 (India), our estimation procedure obtains estimates of growth of realudwages per worker that are deterministic in nature by accounting for any potentialudstructural break(s). Our findings show that the inter-industry wage structure in India has changed a lot in the period 1973-74 to 2003-04 and that it provides some evidence that the inter-industry wage differences have become more pronounced in the post-reforms period. Thus this paper provides new evidence from India on the need to consider the hypothesis that industry affiliation is potentially an important determinant of wages whenudstudying any relationship between reforms and wages.